Crypto News – UK Hacker Sentenced for Stealing $900,000 from Coinbase Accounts

Crypto News – UK Hacker Faces Prison for Phishing Over 500 Coinbase Accounts

Crypto News – A United Kingdom computer hacker, Elliot Gunton, has been sentenced to three and a half years in prison for his involvement in a phishing scam that compromised over 500 Coinbase accounts in 2018 and 2019. According to multiple news outlets, Gunton pleaded guilty to conspiracy to commit fraud outside the UK and money laundering. He and his accomplices stole more than $900,000 from these accounts when he was just 17 and 18 years old, as reported by North Norfolk News on July 27.

Gunton used sophisticated techniques to access the Coinbase accounts by redirecting online log-ins to a fake website. Judge Alice Robinson of the Norwich Crown Court emphasized the high level of planning and technical expertise involved in the crime, as noted by Norwich Evening News on July 27.

Gunton’s previous criminal activities include a 2019 conviction for stealing personal data from TalkTalk customers in exchange for cryptocurrency. Although he received a 20-month prison sentence, he avoided jail time by completing a 12-month rehabilitation order. Additionally, Gunton was ordered to repay 407,359 British pounds ($524,700) after hacking several high-profile Instagram accounts.

US Court Orders Crypto Fraudsters to Pay $31 Million

In the United States, a federal court has ordered Abner Alejandro Tinoco and his firm, Kikit and Mess Investments, to pay over $31 million for running fraudulent cryptocurrency and foreign currency schemes. Tinoco is accused of operating a Ponzi scheme, where he accepted investment funds from clients and used them to pay “bogus” profits to other clients. The misled victims believed their funds were being invested, but the money was instead spent on Tinoco’s lavish lifestyle, including private jet travel and luxury real estate.

The court ordered Tinoco, Kikit, and Mess to pay $6.2 million in restitution to nearly 200 defrauded victims, $6.2 million in disgorgement (repayment of ill-gotten gains), and an $18.8 million civil monetary penalty. The penalty is approximately three times the amount of unlawful funds received from their fraudulent schemes, as noted by the United States Commodity Futures Trading Commission (CFTC) in its July 26 statement.

Washington State Warns of Vims.One Crypto Fraud

The Washington State Department of Financial Institutions (DFI) has flagged Vims.One as a potentially fraudulent crypto platform, advising investors to avoid it. According to the DFI, an investor complained about depositing funds on Vims.One, which is no longer accessible. The platform was linked to a “nonprofit organization” called the Miami Foundation.

The investor reported being lured into a WhatsApp chat with individuals named “Mark” and “Alice,” who promised over 100% returns twice a week. Investors were required to pay a 5% commission to withdraw funds. While the victim managed to recoup their funds, the DFI warned consumers to exercise extreme caution before responding to any solicitation offering investment or financial services.

Korean Authorities Charge Fake Crypto Mining Operator

In Korea, a man known as “Mr. A” has been arrested and charged with fraud for operating a fake crypto-mining business that stole over $1.3 million (1.8 billion Korean won) from victims. According to a July 26 report by E Asia Economy, Mr. A promised high profits of 3-8% per month but did not conduct any cryptocurrency business at all. He used new investment money to pay profits to early investors, creating the illusion of a profitable venture, similar to a Ponzi scheme.

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